Mobile TeleSystems Acquires 70% of Sistema Capital for RUB 3.5 Billion

Cleary Gottlieb represented Mobile TeleSystems (MTS) and the audit committee of its board of directors in the contemplated RUB 3.5 billion acquisition of 70% of Sistema Capital LLC (Sistema Capital) by an MTS subsidiary from the subsidiaries of Sistema PJFSC, MTS’ majority shareholder.

The audit committee recommended the terms of the acquisition to the MTS board, and the MTS board approved the transaction.

As a result of the deal, which is expected to close in the near future, MTS will increase its share in Sistema Capital to 100%. Consolidation of 100% stake in Sistema Capital is aimed at accelerating the launch of new MTS Investments features, developing new offerings for retail and high-net-worth individuals, and expanding ecosystem of MTS’s financial services and strengthening MTS’s overall market position in the fast-growing Russian retail investment services space.

MTS is the largest mobile phone operator in Russia and the CIS, and is listed in New York and Moscow. Sistema PJFSC is the largest public diversified financial corporation in Russia and the CIS, and is listed in London and Moscow.